The following are today’s upgrades for Validea’s Contrarian Investor model based on the published strategy of David Dreman. This contrarian strategy finds the most unpopular mid- and large-cap stocks in the market and looks for improving fundamentals.
SOCIEDAD QUIMICA Y MINERA DE CHILE (ADR) (SQM) is a large-cap value stock in the Chemical Manufacturing industry. The rating according to our strategy based on David Dreman changed from 71% to 83% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Sociedad Quimica y Minera de Chile S.A. (SQM), is a producer of potassium nitrate and iodine. The Company produces specialty plant nutrients, iodine derivatives, lithium and its derivatives, potassium chloride, potassium sulfate and certain industrial chemicals. Its segments include specialty plant nutrients, industrial chemicals, iodine and derivatives, lithium and derivatives, potassium, and other products and services. Specialty plant nutrients are fertilizers that enable farmers to improve yields and the quality of certain crops. Industrial chemicals have a range of applications in chemical processes, such as the manufacturing of glass and industrial nitrates. Iodine and its derivatives are used in the X-ray contrast media and biocides industries, among others. Lithium and its derivatives are used in batteries, greases and frits for production of ceramics. Potassium chloride is a commodity fertilizer that is produced and sold by the Company across the world.
The following table summarizes whether the stock meets each of this strategy’s tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy’s criteria.
| MARKET CAP: | PASS |
| EARNINGS TREND: | PASS |
| EPS GROWTH RATE IN THE IMMEDIATE PAST AND FUTURE: | FAIL |
| P/E RATIO: | FAIL |
| PRICE/CASH FLOW (P/CF) RATIO: | PASS |
| PRICE/BOOK (P/B) VALUE: | FAIL |
| PRICE/DIVIDEND (P/D) RATIO: | PASS |
| CURRENT RATIO: | PASS |
| PAYOUT RATIO: | FAIL |
| RETURN ON EQUITY: | PASS |
| PRE-TAX PROFIT MARGINS: | PASS |
| YIELD: | PASS |
| LOOK AT THE TOTAL DEBT/EQUITY: | PASS |
Detailed Analysis of SOCIEDAD QUIMICA Y MINERA DE CHILE (ADR)
SQM Guru Analysis
SQM Fundamental Analysis
BANCO BILBAO VIZCAYA ARGENTARIA SA (ADR) (BBVA) is a large-cap value stock in the Money Center Banks industry. The rating according to our strategy based on David Dreman changed from 76% to 84% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Banco Bilbao Vizcaya Argentaria, S.A. (BBVA) is a Spain – based bank. It is a diversified financial company engaged in retail banking, wholesale banking, asset management and private banking. Its segments are: Spain, the United States, Turkey, Mexico, South America and Rest of Eurasia. The activities in Spain are banking activity and Insurance. In the United States it offers services through, BBVA USA and the BBVA New York branch. The Turkey segment is represented by the group Garanti BBVA, an integrated financial services group, that also operate in Holland and Romania. The Mexico segment activities include banking and insurance businesses. In South America, it provides banking and insurance businesses. The Rest of Eurasia segment includes business activity in the rest of Europe and Asia
The following table summarizes whether the stock meets each of this strategy’s tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy’s criteria.
| MARKET CAP: | PASS |
| EARNINGS TREND: | FAIL |
| EPS GROWTH RATE IN THE IMMEDIATE PAST AND FUTURE: | PASS |
| P/E RATIO: | PASS |
| PRICE/CASH FLOW (P/CF) RATIO: | PASS |
| PRICE/BOOK (P/B) VALUE: | FAIL |
| PRICE/DIVIDEND (P/D) RATIO: | PASS |
| PAYOUT RATIO: | PASS |
| RETURN ON EQUITY: | FAIL |
| PRE-TAX PROFIT MARGINS: | PASS |
| YIELD: | PASS |
Detailed Analysis of BANCO BILBAO VIZCAYA ARGENTARIA SA (ADR)
BBVA Guru Analysis
BBVA Fundamental Analysis
David Dreman Portfolio
About David Dreman: Dreman’s Kemper-Dreman High Return Fund was one of the best-performing mutual funds ever, ranking as the best of 255 funds in its peer groups from 1988 to 1998, according to Lipper Analytical Services. At the time Dreman published Contrarian Investment Strategies: The Next Generation, the fund had been ranked number one in more time periods than any of the 3,175 funds in Lipper’s database. In addition to managing money, Dreman is also a longtime Forbes magazine columnist.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
